The World Economic Forum (WEF) released a briefing report on all aspects of decentralized autonomous organizations (DAO) from a theoretical and practical perspective.
Over 100 WEF experts, supported by the Blockchain and Digital Asset Project (BDAP) of the Wharton School of the University of Pennsylvania, presented the Decentralized Autonomous Organization Toolkit, a detailed guide to DAOs. The developers envisioned the document to be a starting point for the further development of “effective operational, governance, and legal strategies” of DAOs.
The “toolkit” includes brief encyclopedic entries, covering the following topics and issues related to decentralized organizations:
- What are DAOs?
- DAO governance.
- DAO operations.
- Legal structures and others.
Besides, the document contains a detailed description of the digital assets used in DAOs and practical recommendations on all the topics voiced, which will allow “to help realize the full potential of this emerging form.” The authors indicate that DAOs can potentially “address many of the shortcomings of the traditional firm while also realizing more equitable governance and operations.”
According to the document’s authors, the lack of a legal framework regarding this form of organization is one of the main obstacles to the practical implementation of DAOs. However, some progress is being made in this matter. For example, the Marshall Islands authorities legalized the registration of DAOs in 2022, first as legal non-profit organizations and then as limited liability companies (LLC) with the right to engage in commercial activities.
